Foreign Tourist Inflow Into the Country

Foreign Tourist Inflow Into the Country
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The number of Foreign Tourist Arrivals in India during 2013, 2014 and 2015 were 6.97 million, 7.68 million and 8.03 million, respectively. Ministry of Tourism has not fixed any year-wise target. However, the Twelfth Five Year Plan (FYP) document of the Niti Aayog (the then Planning Commission) had recommended that India strive to increase its share to 1 percent in global foreign tourist arrivals by the terminal year of the Twelfth FYP.

            The Government of India has undertaken following measures to make India a low cost destination with modern infrastructure and other basic amenities in tourism sector:

i)       Stimulus to approve low cost accommodation like Bed & Breakfast units and guest houses.

ii)      Revision of the e-Tourist Visa (e-TV) fee in four slabs of 0, US $25, US $ 48, and US $60 from November 3, 2015. Earlier, e-TV application fee was US $ 60 and bank charge was US $ 2 which was uniform for all the countries. Bank charges have also been reduced from US $ 2 to 2.5 % of the e-TV fee.

iii)     With the objective to reduce the marketing cost of Foreign Tour Operators in developing and selling   tour packages to India, the Ministry of Tourism through its India Tourism Offices overseas provides financial support in form of ‘Brochure Support’ for producing exclusive India tour package  brochures.   The India Tourism Offices overseas also undertake Joint Promotions and Joint Advertising with Foreign Tour Operators/travel agents/wholesalers, and Airlines, etc. 

iv)     Extending rewards under Service Exports from India Scheme (SEIS). The SEIS provides for rewards to all Service providers of notified services, who are providing services from India, regardless of the constitution or profile of the service provider. The rewards provided to Tourism and Travel related services under SEIS are as follows:

a.	Hotel	3%
b.	Restaurants (including Catering)	3%
c.	Travel Agencies and tour operators services	5%
d.	Tourist guides services	5%

Various initiatives undertaken by the Government to boost tourism in the country and subsequently enhance the foreign exchange earnings as well as job generation are as below:-

i.          Multilingual Tourist Infoline:

The Ministry of Tourism has launched the   24x7 Toll Free Multi-Lingual Tourist Info Line on 8.2.2016. The languages handled by the contact centers include   ten International languages besides English and Hindi, namely, Arabic, French, German, Italian, Japanese, Korean, Chinese, Portuguese, Russian and Spanish. The multi-lingual helpdesk in the designated languages   provides support service in terms of providing information relating to Travel & Tourism in India and assist the callers with advice on action to be taken during times of distress while travelling in India and if need be alert the concerned authorities.

ii.         E – Tourist Visa (e-TV):

The Government of India has introduced the facility of e-TV for the citizens of 150 countries at 16 airports. Introduction of e-TV is a Path breaking measure by the Government in easing entry formalities in the country. 

During 2015, a total of 4,45,300 e-TV holders visited India  indicating the success of the new online process.

iii.        Publicity and Promotion:

The Ministry of Tourism, Government of India, promotes India as a holistic destination in the international markets. As part of its promotional activities, the MoT releases campaigns in the international markets under the Incredible India brand-line to showcase various tourism destinations and products including its cultural heritage.

Moreover, a series of promotional activities are being undertaken in tourist generating markets overseas through the India Tourism Offices abroad with the objective of showcasing India’s tourism potential and promoting tourism to the country. These promotional activities include participation in travel fairs and exhibitions; organising road shows, Know India seminars & workshops; organizing and supporting Indian food and cultural festivals; publication of brochures, offering joint advertising and brochure support, and inviting media personalities, tour operators and opinion makers to visit the country under the Hospitality programme of the Ministry.

The Ministry of Tourism provides financial assistance to Stakeholders and Tourism Departments of States/Union Territories for undertaking promotional activities under the Marketing Development Assistance (MDA) Scheme.

iv.        Central Financial Assistance (CFA):

Ministry of Tourism (MoT) operates various schemes through which Central Financial Assistance (CFA) is provided to States/UTs for overall development and promotion of tourism.

MoT has launched following two schemes for development of tourism in thematic manner:

Swadesh Darshan: Swadesh Darshan was launched for development of theme based tourist circuits in a way that caters to both mass and niche tourism in a holistic manner. Thirteen Circuits namely North-East India Circuit, Buddhist Circuit, Himalayan Circuit, Coastal Circuit, Krishna Circuit, Desert Circuit, Tribal Circuit, Eco Circuit, Wildlife Circuit, Rural Circuit, Spiritual Circuit, Ramayana Circuit and Heritage Circuit have been identified for development under this Scheme.

National Mission on Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASAD):

This Scheme has been launched for the development and beautification of pilgrimage sites to tap the growth of domestic tourists driven by religious sentiments and to augment tourism infrastructure at places of pilgrimage   to facilitate pilgrims/tourists. Cities namely Amritsar, Kedarnath, Ajmer, Mathura, Varanasi, Gaya, Puri, Dwarka, Amaravati, Kanchipuram, Vellankanni, Kamakhya and Patna have been identified for infrastructure development under the scheme.     

   Strengthening of Tourism Infrastructure 

The Ministry of Tourism (MOT) has been providing Central Financial Assistance (CFA) for development of tourism infrastructure in States/UTs under various Plan Scheme subject to receipt of suitable DPRs, availability of funds, liquidation of pending utilization certificates against the funds released earlier and adherence to the relevant scheme guidelines. Details of expenditure incurred on tourism infrastructure under the Major Plan Scheme are as follows:-

2010-11 to 2014-15                                                                    (Rs. in Crore)

Name of the Scheme	Expenditure
Swadesh Darshan	20.00
National Mission on Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASAD)	15.60
Assistance to Central Agencies for Tourism Infrastructure Development	66.92
Product/Infrastructure Development for Destinations and Circuits (PIDDC)	2341.75

                                                    

White Paper on Status of Classical Languages

White Paper on Status of Classical Languages

There is no apathy from Government towards Pali, Prakrit and Sanskrit.

(i) A scheme for the Award of the Certificates of Honours was introduced in the year 1958 to honour the scholars of Sanskrit, Arabic and Persian Languages. The scheme was extended to cover Pali/Prakrit in year 1996. Certificate of Honour is awarded to Scholars of eminence over 60 years of age with outstanding contribution in the field of Sanskrit, Arabic, Persian or Pali/Prakrit. This scheme envisages a onetime monetary grant of Rs. 5,00,000/- to the Scholars. This Scheme included one award of Certificate of Honour to One Scholar of either of Pali or Prakrit for a year.

In addition to this, the Scheme also provides for Maharshi Badrayan Vyas Samman for young Scholars in the age group of 30 to 45 years in the field of Sanskrit, Pali/ Prakrit, Arabic and Persian. This award carries an amount of Rs. 1.00 lakh as one-time payment to each Awardee along with a Sanad and shawl, which is presented by President of India. However, from the year 2016, separate awards shall be awarded to Scholars, one each from Pali & Prakrit both under Category of Certificate of Honour & Maharshi Badrayan Vyas Samman.

(ii) Further, Pali-Prakrit Development Project was started in the year 2009 on the initiative taken by Ministry of Human Resource Development as regular Scheme of Rashtriya Sanskrit Sansthan (Deemed University) in the current five year Plan (2012-2017) for Sanskrit, there are several independent departments in colleges, universities, and Sanskrit institutes and universities. It is taught at various levels of education, from schools to universities.

Literature of Pali Language was removed from the scheme of the examination w.e.f. Civil Services Examination, 2013 vide Gazette Notification dated 6th March, 2013 issued by Department of Personnel and Training. Literature of Prakrit Language had never been an optional subject in the scheme of Civil Services Examination.

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Impact of ‘make In India’ Programme

Impact of ‘make In India’ Programme

The Prime Minister of India launched the “Make in India” global initiative on 25th September 2014.

‘Make in India’ initiative aims at promoting India as an important investment destination and a global hub for manufacturing design and innovation, to invite both domestic and foreign investors to invest in India. The initiative is aimed at creating a conducive environment for investment, development of modern and efficient infrastructure, opening up new sectors for foreign investments and forging a partnership between government and industry through a positive mindset. The “Make in India" initiative is based on four pillars, which have been identified to give boost to entrepreneurship in India, not only in manufacturing but also other sectors. The four pillars are (i) New Processes, (ii) New Infrastructure, (iii) New Sectors and (iv) New Mindset.

25 sectors have been identified under ‘Make in India’ initiative, viz., (i) Auto Components, (ii) Automobiles, (iii) Aviation, (iv) Biotechnology, (v) Chemicals, (vi) Construction, (vii) Defence Manufacturing, (viii) Electrical Machinery, (ix) Electronic System Design and Manufacturing, (x) Food Processing, (xi) IT and BPM, (xii) Leather, (xiii) Media and Entertainment, (xiv) Mining, (xv) Oil and Gas, (xvi) Pharmaceuticals, (xvii) Ports, (xviii) Railways, (xix) Roads and Highways, (xx) Renewable Energy, (xxi) Space, (xxii) Textiles, (xxiii) Thermal Power, (xxiv) Tourism and Hospitality and (xxv) Wellness. A National Workshop was held on ‘Make in India’ initiative on 29th December 2014 in Vigyan Bhawan, New Delhi to prepare Action Plans for one year and three years for the identified sectors. Ministries/Departments concerned have updated their action plans to identify quantifiable and measurable milestones in respect of each activity of their Action Plan. The progress on ‘Make in India’ Action Plans is being monitored.

The ‘Make in India’ programme has received a very positive response. FDI inflow has increased 29% during the period October 2014 to December 2015 (15 months after ‘Make in India’) compared to the 15 months period prior to the launch of ‘Make in India’. FDI equity inflow has increased 36%. There is an improvement in business environment with the initiatives taken to improve Ease of Doing Business under the ‘Make in India’ programme. This has resulted in the UNCTAD World Investment Report (WIR) 2015, in its analysis of the global trends in Foreign Direct Investment (FDI) inflows, ranking India as the third top prospective host economies for 2015-2017. Frost & Sullivan has ranked India as number 1 amongst 100 countries on the growth, innovation and leadership index. In November 2015, a global consultancy firm namely Ernst & Young (EY) India conducted the India Attractiveness Survey 2015, where they had taken responses of 505 investors on three most attractive markets for investment. On the basis of response received from these investors and data provided by FDI Markets (a service of The Financial Times Limited), India ranked number one FDI destination in the world during the 1st half of 2015. 

The ‘Make in India’ programme aims at promoting India as an important investment destination and a global hub for manufacturing, design, and innovation. As a result of this initiative, FDI inflow has increased 29% during the period October 2014 to December 2015 (15 months after ‘Make in India’) compared to the 15 months period prior to the launch of ‘Make in India’. FDI equity inflow has increased 36%. As a result of initiatives taken to improve business environment, India has been ranked 3rd in the list of top prospective host economies for 2015-2017 in the World Investment Report (WIR) 2015 of UNCTAD. Frost & Sullivan has ranked India as number 1 amongst 100 countries on the growth, innovation and leadership index. In November, 2015 a global consultancy firm namely Ernst & Young (EY) India conducted the India Attractiveness Survey 2015, where they had taken responses of 505 investors on three most attractive markets for investment. On the basis of response received from these investors and data provided by FDI Markets (a service of The Financial Times Limited), India ranked number one FDI destination in the world during the 1st half of 2015.

Apprehensions of all stakeholders are being given due consideration in the programme. Government is coordinating with apex industry associations, such as FICCI, CII and ASSOCHAM in their activities relating to promotion of industrial cooperation, both through bilateral and multilateral initiatives intended to stimulate inflow of foreign direct investment in India, besides participating in the Joint Business Councils and other interactive sessions organized by them. Government has set up ‘invest India’, a joint-venture company between the Department of Industrial policy & Promotion and FICCI, as a not-for-profit, a single window facilitator, for prospective overseas investors, to act as a structured mechanism for attracting investment. The Government of India, in partnership with various State Government and Business Associations, is also making concerted efforts to make regulations conducive for business. It, therefore, recognizes the active role required to be played by it in investment promotion.

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Thorium based Reactors

Thorium based Reactors

Research & Development on Thorium utilisation continues to be a high priority area of the Department of Atomic Energy (DAE). On account of physics characteristics of Thorium, it is however not possible to build a nuclear reactor using Thorium alone. It has to be converted to Uranium-233 in a reactor before it can be used as fuel. With this in view, a three-stage nuclear power programme, based on a closed nuclear fuel cycle has been chalked out to use thorium as a viable and sustainable option, right at the inception of India’s nuclear power programme. The three stage nuclear power programme aims to multiply the domestically available fissile resource through the use of natural uranium in Pressurised Heavy Water Reactors, followed by use of plutonium obtained from the spent fuel of Pressurised Heavy Water Reactors in Fast Breeder Reactors. Large scale use of Thorium will subsequently follow making use of the Uranium-233 that will be bred in Fast Breeder Reactors, when adequate capacity has been built in the country. The third stage of Indian nuclear power programme which contemplates making use of Uranium-233 to fuel Thorium Uranium-233 based reactors can provide energy independence to the country for several centuries. All efforts towards technology development and demonstration are being made now, so that a mature technology is available in time.

India has abundant quantity of thorium resources contained in the mineral monazite occurring in the beach sand placer deposits along the eastern and western coasts of the country as well as the inland placers in parts of Kerala, Tamil Nadu, Odisha, Andhra Pradesh, West Bengal, Jharkhand and Chhattisgarh. The Department of Atomic Energy (DAE) through its Atomic Minerals Directorate for Exploration & Research (AMD) has carried out exploration activities over the past six decades, which have resulted in establishing in situ resources of 11.93 million tonnes of monazite as on February 2016 in the country. Indian Monazite contains about 9-10% of Thorium oxide (ThO2) which in turn results in about 1.07 million tonnes of Thorium oxide (ThO2).

A three stage nuclear power programme has been devised to efficiently utilise this large reserve of thorium. The energy potential of this thorium reserve is estimated to be more than 155,500 GWe-years.

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Correcting the road-rail skew

We must make a national goal of reversing the road-to-rail ratio to at least 50:50, if not 30:70, in the next 10 years

Transportation is an integral part of economic development. It also shares a two-way relation. As the speed, cost and reach of transportation improves, it leads to higher incomes and development, which in turn leads to greater demand for transport and mobility. In the digital age, this maxim is applicable to digital connectivity too. Some developed nations, notably in Europe, have sanctified digital access and mobility as a basic right of all citizens. Cities in Europe have dense grids of public railway transport, while even the remotest mountaintop villages of Switzerland have road access. In the motor car dominated US, the road and highway networks connect dispersed suburbia to cities and workplaces.

The actual mix of various modes may vary, but economic development and transport infrastructure go hand in hand. The denser, the better. More recently, there have been concerns about the contribution of transport-related emissions to air quality and climate change. However, the importance of transportation to the economy is unquestioned.

That conviction was behind India’s aggressive push to build the national highway system called the Golden Quadrilateral, launched during the Atal Bihari Vajpayee years. Infrastructure spending on roads has multiple round impacts. There’s a first-round impact in terms of increased demand for road materials and employment. Then, there’s also a significant second-round impact on people’s income and livelihood. Several studies have documented how villages in proximity to national highways witnessed greater increase in incomes than those far away. Better connectivity affords better earning opportunities, lower commuting time, and also increases in land values adjacent to major roads. There could be a third round-impact through dynamic externalities. For instance, farmers’ produce can fetch better prices for perishable goods, as they can reach further markets quicker.

That the highway construction boom has been a boon to India’s economy is well known. But what is less known is that this has led to a peculiar skew. The aggregate ratio of goods transported by road as compared to rail is now at 70:30. This ratio is the reverse of what it should be. Worldwide, more goods travel by rail than road. It is less costly, more efficient and environmentally cleaner to use rail. In today’s world, cargo moves even from Hamburg to remote Northern China by rail. There is an active rail link between Yiwu in Eastern China and Iran, by a route that passes through Kazakhstan and Turkmenistan.

In India, however, the growth of cargo carried by rail has fallen far behind that by road. This has been due to decades of neglect in terms of capital spending on rail infrastructure. That may be changing now. The irony is that the highly successful national roadway programme was funded by a one-rupee fuel cess on diesel, to which the major contributor was the Indian Railways. So, the railways was paying for the success of its rival. Road cargo services offer convenience, flexibility, better tracking and door-to-door services. Unless the railways can match this, they will keep losing cargo business to roadways.

However, this skew has led to higher logistics costs for the nation. Apart from its inherent fuel inefficiency, road transport is also subject to arbitrary entry and toll taxes. India’s logistics costs can be as high as 15-17% of total delivered cost of the industrial product. This is inexcusably high, makes Indian industry highly uncompetitive and is perhaps a great impediment to Make in India. The revival of cargo by rail is an urgent priority.

We must make a national goal of reversing the road-to-rail ratio to at least 50:50, if not 30:70, in the next 10 years. This year, finance minister Arun Jaitley provided budgetary support of almost Rs.2.2 trillion to road and rail infrastructure. More will be spent using off-budget funds. The ratio of 50:50 should be well-defined goal (sort of like “Project Tiger”), time-bound and in the same league as increasing India’s global rank in the ease of doing business to the top 50.

An important and unexpected opportunity is in the offing for extending the rail cargo network in India. This is a direct consequence of the spread of national roadways. As interstate multi-lane highways get built around the country, the median section becomes an extremely useful piece of real estate and right of way. For this, there is no additional cost or complication of additional land acquisition. On this median strip, elevated rail tracks on thin pillars and modular, containerized cargo system can be built.

It is then possible to develop a continuous throughput of goods transport with automatic switching and use of modern technology such as global positioning system and driverless trains. Such a system will be characterized by high utilization and safety, even at moderate speeds, and a high convenience factor.

Many years ago, the government of Maharashtra took great pride in having built 37 flyovers all over Mumbai city, greatly easing vehicular traffic. What was missed in that euphoria was the permanent loss of precious right-of-way and median strip access, so crucial for public transportation. There’s also a belated realization that flyovers merely transport traffic jams from one end to another. But that’s a topic for intra-city public transportation. As for the national cargo system, we can use the national highway system greatly to the advantage of railways using the median space. And thereby correct the road-to-rail skew.

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The new energy policy makes essential changes

It could signal market-oriented reforms that have been long overdue

Last week was a good one for the Narendra Modi administration. Complaints that it was merely tinkering around the edges of its reform agenda had been proliferating for a while. But it has pushed back now with two major moves. The real estate bill, as we wrote in these pages on Tuesday, has considerable potential. The other—the Hydrocarbon Exploration Licensing Policy, or HELP, which puts in place a new regime for oil and gas exploration—is even more significant. It could, in fact, signal one of the most important market-oriented sectoral reforms of the past two decades.

The new policy’s overarching theme is plainly to reduce government intervention at every stage of the upstream industry, from securing blocks to licensing to marketing. The open acreage aspect of the policy—allowing investors to bid for blocks of interest to them at any time—is a step towards casting the government in the role of an enabler.

The earlier process of a yearly auction of a cluster of blocks, on the other hand, saw it operate more as a heavy-handed gatekeeper. And the move towards a single licence for exploration and production of all forms of hydrocarbons is such an obvious prerequisite for streamlining regulation that it’s baffling it has taken as long as it did.

But perhaps the biggest gains in incentivizing investment stand to be made from HELP’S switch to a revenue-sharing model, wherein the government is not concerned with the cost of production. The previous profit-sharing model’s pitfalls became more obvious the longer the dispute with Reliance Industries Ltd over declining output from the KG D6 field dragged on.

If the government’s cut is to be calculated from a revenue minus cost of production base, it has a necessary interest in maintaining oversight of the latter—just as it becomes profitable for the investor to exaggerate cost. Cue micromanaging, endless rounds of audits and an antagonistic relationship from the get-go, with the government embroiled in a production process it has no business concerning itself with.

To see the full potential of these policy shifts and HELP’s other changes—like market-based pricing for hydrocarbons from deep water, ultra deep water and high-pressure-temperature areas where operations are difficult—they must be seen in context.

The commodities crash has boosted demand for refined products at a growth rate that hasn’t been seen in 15 years. That may be a short-term phenomenon—although it seems unlikely that oil prices will rise substantially any time soon—but the long-term trend of rising demand is well-established. According to the International Energy Agency, Indian demand will hit 10 million barrels per day by 2040, the steepest rise for any country.

An upstream sector that can keep pace with that demand is essential. For an idea of what happens in its absence, look back no further than 2013’s taper tantrum. Investor sentiment about emerging markets nosedived and the rupee hit a record low against the dollar—not good news for a country that relies on imports for three-quarters of its domestic crude requirements and a third of its gas needs. The government had to consider ideas such as banning night-time sale of fuel.

This vulnerability to the vicissitudes of the global economy and geopolitics aside, the import bill is a constant drain on the exchequer.

Nine rounds of the New Exploration Licensing Policy kicked off in 1999 have failed to enable the upstream sector adequately. Over 250 blocks were awarded in that time, but production remains comparatively anaemic. Investors have run into regulatory hurdles time and again.

Those hurdles and pricing controls have ensured international oil companies have been wary of wading into Indian waters as well. BP Plc’s $7.2 billion outlay in 2011 for a 30% stake in 23 oil and gas contracts operated by Reliance Industries in India, including the KG D6 block, has proved to be a less than advantageous buy-in.

Whether HELP will succeed in bringing in the necessary investment or not remains to be seen. But it sends out the right signal. There are other reforms that must be put in place for a truly coherent energy policy—scrapping the current method of having the various energy ministries operate in silos and merging them, for one—but this is a good start.

Will the new energy policy improve the health of the upstream sector

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The budget and higher education

Increase in enrolment calls for improvement of the quality of education, which is in a dismal state

In a move towards realizing the increasing aspirations of young India, the government, for the year 2016-17, has earmarked Rs.28,840 crore for the department of higher education under the human resource development (HRD) ministry, as against Rs.26,855 crore in 2015-16, registering a significant increase of 7.4% over the previous year.

However, the budget has reduced plan funds for higher education to Rs.14,428 crore in its revised estimates (RE) for fiscal year 2015-16, as against Rs.15,855 crore in its budget estimates (BE ), a decline of 9.9%. There is a well- intended and concerted focus to improve higher education by the government, but the share of the HRD ministry’s department of higher education of the total central plan outlay has come down from 2.54% in 2015-16 to 2.15% in 2016-17; budgetary allocations for higher education as a percentage of total education has continued to be only around 39%.

This has to be seen in the context of the changing demographic structure and increased enrolment in elementary and secondary education, which essentially requires more investment to be made in higher education to meet the demand for a skilled workforce and progression of school graduates.

The proposed Higher Education Financing Agency (HEFA), with an initial capital base of Rs.1,000 crore is a step towards improving the infrastructure of educational institutions. Even though it will be a non-profit organization, it will leverage funds from the market and supplement them with donations and corporate social responsibility (CSR) funds. Therefore, its operative and regulatory mechanisms are crucial to ensure its stability and check the burden.

In the context of reduction of the plan outlay (BE) of student financial aid fromRs.2,373 crore in 2015-16 to Rs.2,220 crore in 2016-17, the HEFA needs to be studied more carefully to analyse its strengths.

The gross enrolment ratio (GER) in higher education has doubled from around 11.6% in 2005-06 to 23.6% in 2014-15, according to the provisional report of the All India Survey on Higher Education 2014-15, with 33.3 million students enrolled in 2014-15 as compared to 14.3 million in 2005-06. But it lags much behind the global average of 30%. Despite many attempts to improve the access and outreach, social disparity persists in higher education. For instance, GER for the male population is 24.5%, while for females it is 22.7%. For Scheduled Castes, it is 18.5% and for Scheduled Tribes it is 13.3%.

The increase in enrolment calls for improvement in the quality of education, which is in a dismal state. To improve the standard, among many other factors, the quality of teachers is crucial. The Pandit Madan Mohan Malviya National Mission on Teachers and Teaching aims to look at teacher education in a holistic manner, to strengthen the institutional mechanism in a single continuum covering school to universities and to create synergies among the various related initiatives.

However, the plan allocations to this umbrella scheme have been reduced to Rs.60 crore in the 2015-16 RE as against Rs.90 crore in 2015-16 BE. It is indeed a welcome step that the BE (plan) in 2016-17 has been increased to Rs.165 crore, which is likely to help in improving the quality of teachers, attracting talent into teaching and investing in infrastructure related to innovative teaching.

In a situation when more than 94% of the workforce in India has no technical education and merely 8% in rural and 30% in urban areas have general education of higher secondary and above, more emphasis on technical education is likely to play a crucial role in fuelling the government’s well-intended initiatives such as Skill India, Make in India, Digital India and Jan-Dhan Yojana.

This needs to be supplemented with the skill development initiatives. But we see a reduction in the plan grant (2015-16 RE) to the ministry of skill development and entrepreneurship by 33%. The increase this year is only by 13%. In the budget speech, it was mentioned that the National Skill Development Mission has imparted training to 7.6 million youths. It is indeed very progressive and to improve it further concurrent evaluations of these initiatives should be made. The proposal to set up 1,500 multi-skill training institutes and to link the National Board for Skill Development Certification with the industry and academia is likely to fill the skill gap and will attract more pupils into higher education.

This budget is very crucial at a time when the government is finalizing its “New Education Policy”, which envisions making India a knowledge superpower. To realize it, we need to develop a focused and multipronged strategy, which again requires increased expenditure on education. And the latter remained stagnant at about 3% of gross domestic product (much below the recommended 6% by the Kothari Commission in 1966) and about 11% of total expenditure over the past six years (Economic Survey 2015-16).

Higher education is a feeder to the workforce and to make India the “human resource capital of the world” in its truest sense, to reap the demographic dividend and to ensure access, quality and equity. Increased expenditure along with sustained focus and interventions will enhance the productivity of the workforce, improve welfare of the population and yield higher economic outcomes.
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